Monthly mentions of the Magnificent 7 have fallen roughly 70% from their Q1 2024 peak, according to reports from The Kobeissi Letter. The decline brings mentions to approximately 1,400, marking the lowest level since the fourth quarter of 2023. This represents a sharp reversal from early 2024 when the group became one of the dominant themes in financial markets, with monthly mentions peaking at roughly 4,300 in Q1 2024. The current level represents a decline of about two-thirds from that high.
As reported by The Kobeissi Letter, the decline mirrors earlier Wall Street groupings, including FANG and FAANG. Mentions of those terms peaked at nearly 2,800 in the fourth quarter of 2018, then plunged by about 82% to roughly 500 by early 2020. The 'Magnificent 7' label emerged in 2023 to describe Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla. The current decline signals a notable shift in investor attention away from the megacap technology group.
The performance disparity between the Magnificent 7 and AI infrastructure companies has become stark in 2026. Twelve Nasdaq 100 stocks have more than doubled this year, with none belonging to the Magnificent Seven, according to recent market data. SanDisk leads with a 411% year-to-date gain, followed by Micron at 207% and Intel at 175%. In contrast, Amazon leads the Magnificent 7 with a 20% gain, followed by Nvidia at 14%, Apple at 13%, and Alphabet at 12%. Microsoft has managed just a 4% gain, Meta has fallen 10%, and Tesla is down 27%, the group's weakest performer. The S&P 500 has gained roughly 13% over the same period, leaving the Magnificent Seven significantly behind.
According to The Kobeissi Letter, the decline comes as the group loses some market dominance in 2026. Investors are increasingly favoring companies tied directly to heavy AI infrastructure spending, with the shift visible in the relationships between the seven stocks. The changing dynamics have prompted some Wall Street strategists to question whether the Mag 7 remains the best way to capture the broader AI theme. Citigroup strategists have argued that the popular Magnificent Seven label is no longer relevant for assessing how to position for the US AI trade. Recent developments show this trend continuing with Tesla reportedly weighing the sale of its China business to pave the way for a merger with SpaceX, as reported by The Wall Street Journal.
As reported by The Kobeissi Letter, the shift is also visible in the relationships between the seven stocks. Amazon, Nvidia, Meta, Apple, Microsoft, Tesla, and Alphabet are no longer moving in tandem as closely as they once did. This signals a growing divergence in how investors are valuing the companies, with their average three-month pairwise correlation falling to 0.27, from 0.78 in mid-2025. The changing dynamics reflect evolving investor preferences in the AI-focused market environment, with some companies like Meta still benefiting their core advertising business while others like Amazon, Alphabet, and Microsoft are showing better monetization capabilities.
